The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-11-19
Thirteenth Day.

q
That they havehad the said petition under
consideration, and in view OF the fact that
the appropriation for building school
houses passed by the last Legislature, ana
in view of the further fact that this work
belongs especially to the Board OF Educa-
ton. we recommend that the petition be
referred to the Board of Education
Respectfully submitted,
J. WIGHT,
HENRY S. TOWNSEND,
S. G. LUHIAU,
FRANCIS GAY,
o. NAwAHINE.
The report was adopted.
REPORTS PRINTED.
Rep. F. Brown, from the Printing Com
mittee, reported the Minister of Finances
and the Financial Agents reports as
printed and ready for distribution.
RESOLUTION.
Rep. Paris presented the following reso-
luton:
Resolved, That His Excellency the Min
lister of the Interior inform this Assembly
why the wharves and Court House pro-
vided in the Appropriation B:,l of 1886 for
the district of North Kona, Hawaii, have
not been built.
The resolution was adopted.
OPINION OF THE SUPREME COURT ON THE
LOAN.
President Wilder announced he had re-
ceived the following communication from
the Justices of the Supreme Court:
DEPARTMENT OF THE JUDICIARY,
HONOLULU, Nov. Is, 1871
Hon. S. G. Wilder, President Legislative
Assembly-Sir: The Justices of the Su-
preme Court have had the honor to re-
ceive a communication from you, dated
the 10Th instant, in which the opinion of
the Justices is asked by. the Legislature on
certain questions which appear in the re-
port of a select committee of the House, to
whom was referred a bill to amend the
Loan Act of 1886. The first question sub
mitted is: Under the Acts of 1886 where
would such bonds be payable?
There were two Acts passed by the Leg
islature of 1886, relative to a national
loan. The first was approved on the 1st of
September, 1886, which for convenience in
this discussion we will call the First Act"
and the second, which was amendatory of
the first, was approved on the 18th day of
October, 1886, we viii call this the Second
Act"
Section of the First Act authorizes the
Minister of Finance 'to make such proper
arrangements as will enable the holders of
such bonds to receive the interest due on
the same either III Honolulu, or in the
city of San Francisco or in such financial
center as he may deem advisable
We consider that this is provision for
the remittance Of interest and that it can
not be extended beyond what is plainly ex-
pressed. 1t does not provide for the pay
ment of the bonds at any place. No place
being mentioned in the Act for their pay
ment, it must be taken that they are paya-
BILE at the Treasury in Honolulu, whence
they are issued.
The second question is: Is section 5 of
the Loan Act, dated September L, 1885, in
force?
We answer: This section is not re-
pealed in terms by the Second Act, nor
can we find anything that repeats it by
implication. The First Act authorized the
loan and the issue of bonds; the Second Act
amended sections 2, 3 and of the First
Act, and it left the remaining sections, 1,
s. 6 and T. of this Act untouched Section
is therefore in force, and is the only au-
thOrity for the payment of any commits
sions or expenses out of the avails of the
loan.
The third question is: If said section is in
force, does the same exclude payment of
any expenses for floating the loan, ETC.,
other than 5 per cent commission2
We answer: The terms of section
authorize, first, the payment of the COM
mission allowed by section g. This must
be considered now to refer to section 8 as
amended. This allows commission, which
is not to exceed per cent, to the person or
syndicate negotiating the sale of the first
issued half of the loan, to wit: 81 ,OO0, 600.
These bonds beng sold at not less than 90
per cent of par value, and likewise a COM
mission not to exceed per cent for nego-
tiating the remaining Issues.
Section also authorizes the payment
for preparing such bonds and coupons.
The PLAIN intendment of these words can
not be extended to mean the payment of
charges in the nature of advertisement,
brokerage, guarantee, English stamp
duties, ETC., such not being expenses for
paper, engraving and printing of bonds
and coupons.
If the financial agents employed by the
Government have incurred other expense,